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BitOffer Institute: ETH Options Trading Volume Reached New High, 250,000 Contract Sold 1 Week

According to the data of BitOffer, one of the most professional cryptocurrency derivatives trading platforms, in the past 24 hours, the total contract purchase of ETH options has reached 250,000 since the positions and trading volume of ETH options on surged. At the same time, due to the market monitoring, the total capital inflow of ETH last week surpassed $150,000,000, which has increased by 100%. The current positions have reached a historical peak.

Lucian, the chief analyst on BitOffer said “Even the turnover of the Bitcoin market was much higher than that of Ethereum, but from the turnover rate in the last 24hours, the ETH turnover rate was 26.94%, which is much higher than the BTC turnover rate that reached 9.25%. The above data shows that the desire of trading ETH is much stronger.” In the meanwhile, Lucian also pointed out that the Bitcoin holders prefer to HODL, so it is one of the reasons why the activity of the Bitcoin market decreased. In addition, the ETH 2.0 upgrade made the consensus of Ethereum increased, it should have caused more capitals to be moved into the ETH market, and those factors will lead the movement of the ETH market to become more bullish.

The Ethereum 2.0 will become the milestone of the Blockchain application. As a more convenient, high-efficiency and secure upgrade will happen on Ethereum, POS (Proof of Stake) represents a class of consensus algorithms in which validators vote on the next block, and the weight of the vote depends upon the size of its stake. Since the hashrate it requires will be much lower than PoW, the block reward will decrease, which will cause the inflation of ETH to become lower also. Some of the markets hold the view that its scarcity will be in some way as the scarcity of gold.

While the market tends to call a bull, as an investor, how do we take the chance? Recently, the analysis came from Lucian, the chief analyst on BitOffer, mentioned “as for now, the BTC market and the ETH market have both broken through the resistance, a bull market is possible to come out. Meanwhile, since the markets surged in such a short time, the capitals may choose to cash out at the high positions. For the purpose of avoiding losing while the market shocks, the longs can choose to buy put options contracts to hedge the risk.

Why is BitOffer Options the Hedge Tool Ever?

Taking BitOffer ETH (Ethereum) options as an example. Buying options contracts means that you are buying a kind of rights. For example, I buy an ETH call options contract, then I would be able to own the rights to earn the price spread if the ETH price increases. If the ETH price rises by $100, I would directly earn $100 as the payoff. But if the ETH price drops by $100, I would not have to bear the risk of losing $100. What I buy is the earning rights, during the period, I don’t have to bear any risk buy only pay $1 as the premium to buy an options contract.

While hedging, if we buy an ETH at $250, to prevent the asset from losing when the market fluctuates, we could spend $1 in buying an ETH put options. In one hour, if the ETH market falls by $30, then our profit would be: -30 (Loss on the Spot trading market) + $30 (Profits on the Options trading market) -1(Premium to buy the options contract) = -1. In this way, we will be able to use $1 to hedge all the risk while the ETH price plunges.

Recently, the BTC market and the ETH market both became bullish, the total contracts purchase of the ETH options on reached 250,000. It is obvious that when the market fluctuates sharply, more and more investors started choosing options trading as their first choice to trade. BitOffer, as one of the options trading platforms which have the highest trading volume, launched the most innovative options trading which requests 0 fees, 0 margins, and enables investors to earn 2,000X profits but never face the risk of being liquidated. It brings the investors a unique advantage of control risk and budget whether hedge or make a leveraged investment.

BitOffer, a Better Offer.



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